eBay Inc., the American multinational corporation which focuses on e-commerce, providing consumer-to-consumer and business-to-business sales services online, is set to release its earnings report on the 25/01/2017 after markets close. The report will cover the fiscal quarter ending Dec 2016, indicating amongst other things, the Earnings Per Share (EPS) for the fourth quarter of 2016. The EPS is expected at $0.47, which would imply that eBay Inc. earned 47cents for every outstanding share in the market.
The share price of eBay has been oscillating between 27.5 and 33 dollars a share since the second half of last year as the giant fails to convince investors of its ability to outperform its historical records given the current economic climate. eBay Inc. is, however, expected to site a bumper 4th quarter with an especially good cyber Monday and a general uptick in sales as consumers avoid the hustle and bustle of the brick and mortar economy, looking to etch out a saving by purchasing directly from online venders. If this is the case, we would see the EPS beat expectations and vice versa in the event that consumers failed to live up to the expected forecast.
Currently, the stock is set to the “high-end” of the range, trading at 30.50 as the forces of demand and supply fight it out for equilibrium. The earnings report is sure to assist either side, depending on its outcome with sellers hoping that the EPS falls short of the expected 47 cents, which would attract more sellers as the demand for the stock decrease, sending prices back below 30 USD a share toward the “lower-end” of the range. On the other hand, an EPS which beats expectations, will have buyers celebrating as the stock price grinds higher with the help of more buyers entering while sellers jump the ship.